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Sales Tax

Zuora

Sales Tax

Depending on where you are based, you may need to add tax to the cost of your subscriptions. If you use Braintree as a payment provider, you can set up a sales tax through Zephr.

When configured, the sales tax amount displays in the format $x + $y (tax)

To configure a sales tax for Braintree payments, you must do the following

  • Configure the tax in Braintree
  • Configure the tax in Zephr

Once configured, you can test the sales tax, as described in the Test the Sales Tax section.

Configure Sales Tax in Braintree

To configure a sales tax in Braintree, complete the following steps:

  1. Login to your Braintree account
  2. Select Subscriptions
  3. Select Add Ons/Discounts
  4. Select Create an Add-On
  5. Enter the following information for your add on:
    • ID
    • Name
    • Optionally, Description
  6. Set the Add On amount to 1Note: Zephr uses the Add On based on a percentage of the purchase price, so you can set this amount field to any figure. For further information on configuring the sales tax in Zephr, see the Configure Sales Tax in Zephr topic
  7. In the Duration selection, select whether the charge applies to the duration of the subscription, or for a set number of billing cyclesNote: A sales tax is likely to be needed for the Duration of the Subscription
  8. Select CreateThe Add On Details display.
  9. Note the Add On IDYou might have set this, or it might have been randomly generated.

Configure Sales Tax in Zephr

To configure a sales tax in Zephr, complete the following steps:

  1. Select the Settings icon, which is located at the top right of all screens
  2. Select ExtensionsThe Extensions screen displays.
  3. Scroll to the Internal section
  4. Select Sales TaxThe Sales Tax screen displays, as illustrated below:

    SalesTax.jpg

  5. Select the Configuration buttonThe Configuration screen displays, as illustrated below:

    SalesTax_Config.jpg

    Complete the Configuration screen as follows:

    1. Enter your Braintree Add On ID in the Braintree Addon ID text box
    2. Enter your Tax Label in the Tax Label text boxThis label is used to explain the additional amount on the price of your subscription.
    3. Enter the user attribute used to determine whether a user sees prices with the tax add-on in the User Attribute Field text box. For example, you may select State, to charge tax to users in particular US statesThe details look similar to the following:

      Screen-Shot-2020-10-14-at-4.30.10-PM.png

    4. Select the Done button to save the configuration and return to the Sales Tax screen. Selecting the Cancel button displays the Sales Tax screen without saving the configuration
  6. Select the User Attribute Mapping buttonThe User Attribute Mapping screen displays, as illustrated below:

    SalesTax_UAM.jpg

    Complete the User Attribute Mapping screen as follows:

    1. Enter the user attribute values to map to a tax percentage in the User Attribute Values to Tax Percentage Mapping text boxFor example, the following entry means that users from New York State must pay 10% tax on their subscriptions:

      {“NY”:”10”}

      This is entered is as illustrated below:

      Screen-Shot-2020-10-14-at-4.30.31-PM.png

    2. Select the Done button to save the user attribute mapping and return to the Sales Tax screen. Selecting the Cancel button displays the Sales Tax screen without saving the user attribute mapping
  7. Select the toggles beside each site for which you want to activate the plugin, as illustrated below. Alternatively, select the Select All Sites toggle to activate the plugin on all your sites

    Screen-Shot-2020-10-14-at-4.30.45-PM.png

  8. Select the Save button

Your plugin is now enabled and is used in the specified sites.

Test the Sales Tax

You can test the plugin as follows:

  1. Register as a user and specify NY as your state
  2. Navigate to a payment pageYou see any subscription prices with an additional 10% added for tax.
  3. Register as a user and specify a different state
  4. Navigate to a payment pageYou see the usual price.